Zero to One

/0 Comments/in , , , , , , /by

This book is composed of Peter Thiel’s advice on startups with different take away such as the DO’s and DON’TS of startups, what to focus on when building a startup, insight of building a billion-dollar startup that stands the test of time and many more. He gave an illustration of the first team he built which is known as the “PayPal Mafia” who have gone out to help each other start and invest in successful tech companies. They sold PayPal to eBay in 2002 for $1.5billion. Ever since then:

  •    Elon Musk has founded SpaceX and co-founded Tesla Motors
  •    Reid Hoffman co-founded LinkedIn
  •    Steve Chen, Chad Hurley, and Jawed Karim together founded YouTube
  •    Jeremy Stoppelman and Russel Simmons founded Yelp
  •    David Sacks co-founded Yammer
  •    and Thiel himself co-founded Palantir
  • And today, all these seven companies are worth over $1billion.  

This book begins with Peter’s favorite interview question which is, “What important truth do very few people agree with you on?”  He justifies this question by saying that “brilliant thinking is rare, but courage is even shorter than genius”. He further says that globalization without new technology in a world of scarce resources is unsustainable. Because the truth is that technology matters more in globalization. The best way to create wealth is not by spreading old ways but by innovation. And to introduce innovation, we have startups. He points out that competitive market destroys profit. He said, "if you can recognize competition as a destructive force instead of a sign of value, you are saner than most.” To get more capital, you need to be a monopolist and escape competition. You may think monopolies are bad but thinking of it in a world where it’s possible to invent new things, it brings about more creativity and innovations. Creative monopolists add new categories to the categories of products available, thereby giving customers more varieties to choose from.

What makes a monopoly durable? What does a company with large cash flows far into the future look like? There are four key characteristics to describe:

  1. Proprietary technology
  2. Network effects (aka virility)
  3. Simple scalability
  4. Branding

Peter’s next favorite question is “What valuable company is nobody building?” You get a valuable company when you create value and capture value. If you want to create and capture value as an entrepreneur, don’t build an undifferentiated commodity business. The author makes the difference between a perfectly competitive market and a monopoly and explains how both companies are trying to disguise themselves. The author takes us through various schools of thought of startups in each chapter of his book. Some of which are: the ideology of competition which explains why people compete, secrets which reveal why people are not looking for secrets and why companies need to stop believing in secrets, the mechanics of mafia and so on.

He concluded by asking the question: Stagnation or Singularity? It all depends on us. Our task today is to find singular ways to create new things that will make the future transpire from Zero to One. The critical step is to think for yourself, see the world anew, afresh and as strange as it was to the ancients who saw it first. Then we can recreate it and preserve it for the future. Whatever decision you make today, determines the success we experience tomorrow. So think critically and take action not by acting upon a created solution but by searching out a unique problem and proffering a solution to it.

THE BIG THREE - KEY POINTS

Key point #1:  The author encourages monopolization other than perfect competition

Key point #2:   Leverage on the power of exponential growth

Key point #3: Don’t just invent a product; invent an efficient way of selling it.

One Last Thing

“The best entrepreneurs know this: every great business is built around a secret that’s hidden from the outside. A great company is a conspiracy to change the world; when you share your secret, the recipient becomes a fellow conspirator.”
― Peter Thiel, Zero to One: Notes on Startups, or How to Build the Future

The One Thing

/0 Comments/in , , /by

The one thing by Gary W Keller and Jay Papasan is focused on understanding that one thing you need to focus on to make you successful. Not all tasks on your to-do list matter equally. There are some that are of high importance and consistently give a successful result, that is the ONE THING we are referring to. Sometimes it is the only thing you do, sometimes; it is the first thing you do. Whatever ways you handle it, there is always a key phrase that says doing the most important is the most important thing to do. You have to make the hard things easy to do by disciplining yourself.

Things become easier after you have discipline yourself and establish that habit not only the thing you trained yourself for. The key point is, aim for bigger achievement, dream big, follow peoples trail and don’t be scared o fail. Sometimes we blindly believe in some lies that sound like truth and this has a great impact on your productivity. Some of these lies are multitasking, everything matters equally, a balance etc. Gary and Jay made us understand that there is nothing like multitasking, equality, willpower. They are all lies. It is much advisable to do fewer things for more effect than doing many things with side effects. Successful people work with a clear sense of priority and not from junks of priorities. Gary Keller and Jay Papasan reminded us again of the 80/20 principle. He shared in his book that we don’t need a To Do list; instead we need a success list. A success list is a list designed purposefully around your highest leverage activities. Your leverage activities can be determined using the 80/20 principle. The principle states that the MINORITY of your effort is what leads to the MAJORITY of your result. Your little investment today will yield a bigger result of what you will experience. So most importantly, you have to understand those minute tasks, those little tasks you should divert your 20% attention to that will yield 80% impact on your results. With this, you have been able to turn your to-do list into success list. Gary continues, “You can do two things at a time but you can’t focus effectively on two things at once. The truth is when you focus on two things you feel you are multitasking without paying cognizance to the fact that your attention is being divided and something is serving as a distraction at that particular time. I admire a quote that says take up two things, and your attention gets divided, take on three things, and somethings get dropped. The buzz, flash, pings on your phones can wait or be avoided by shutting down your phone just for the limited period you need to concentrate. People who seem like they are highly disciplined has conditioned a handful habits into their lives. Developing a habit takes an average of 66 days, with your willpower and persistence you can turn your discipline into a habit and things become easier to execute. In summary, your willpower each day is limited so use it wisely and do the most important things first so that you will not miss it.

The Big Three - Key points

Key Point #1: Do fewer things and get more effect rather than doing many things with side effects

Key Point #2: Discipline can be groomed into a habit

Key Point #3: Work with your success list and not your To Do list

One Last Thing 

“Work is a rubber ball. If you drop it, it will bounce back. The other four balls-- family, health, friends, integrity-- are made of glass. If you drop one of these, it will be irrevocably scuffed, nicked, perhaps even shattered.”
― Gary Keller

The Everything Store. Jeff Bezos and The Age of Amazon

/0 Comments/in , , , , /by

“The Everything Store” offers an intrinsic view of the harsh business world. The book is divided into three parts, each part describing how Amazon transcend from a book selling store to everything store. The vision was birth by Jeff Bezos, a dogged visionary and the founder of Amazon.  Brad Stone breaks down the book into three parts as said earlier, the faith which describes the early years of Amazon, Literacy influence which explains the days of struggle and the Missionary which define the success stories of Amazon. The book tells how Amazon started up with a small family like business on a shoestring budget. What keeps the dream growing is the success stories. No matter how little the success might be or how large, they celebrate every success. This helps to keep the goals, achievement, and expectations attainable.

Jeff took every possibility he has to develop himself and learn something. Frequently he quotes Alan’s observation that “Point of view is worth 80 IQ Points”.  This is a reminder that looking at things in a new way can enhance one’s understanding. Jeff made customer satisfaction his priority which leads Amazon to the continual development of new features that traditional publishers often find doubtful such as the customer review.  He also initiated a platform for individuals to sell new products. He was able to realize the potential in e-commerce over traditional businesses and explored it with some features like product recommendation.  Jeff has a saying that you can work long hard and smart, but in Amazon, you can only pick two out of three. Over the years, Amazon approach has been to establish fulfillment of centers in economically weak areas to exploit cheap labor and the ability to fire worker once the season is over.

The author made an actionable point which is one of the key takeaways of the book; he said marketing budget could be well spent on enhancing customers experience instead of tweaking the website, improving services or reducing prices. Not all product and companies can be feed on marketing because sometimes achieving ROI on marketing campaigns is simply not possible. When the company reached success, what matters is the perception of the success of the company. He listed all the virtues companies need to have in order to be considered cool.

The Cool and Not Cool Effect list includes: "Rudeness is not cool. Defeating tiny guys is not cool. Close-following is not cool. Young is cool. Risk taking is cool. Winning is cool. Polite is cool. Defeating bigger, unsympathetic guys are cool.  Inventing is cool. Explorers are cool. Conquerors are not cool. Obsessing over competitors is not cool. Empowering others is cool. Capturing all the value only for the company is not cool. Leadership is cool. Conviction is cool. Straightforwardness is cool. Pandering to the crowd is not cool. Hypocrisy is not cool. Authenticity is cool. Thinking big is cool. The unexpected is cool. Missionaries are cool. Mercenaries are not cool."

The Everything Store also tells about how Jeff makes most of his decisions, why he made it and how it brings about customer satisfaction. There are too many takeaways from this book and can only be tapped into if you get a copy.

THE BIG THREE - KEYPOINTS

Keep Point #1: Reinvent your business model without completely renegotiating it

Keep Point #2: Never allow cynics to change your mind

Keep Point #3: Involve your employees in your decision-making process. Let every voice be heard.

One Last Thing

"There's so much stuff that has yet to be invented. There's so much new that's going to happen...It is still Day 1 in such a big way" - Jeff Bezos

No Limits

/0 Comments/in , , /by

John Maxwell, a prolific writer, speaker and leadership coach, helps us to explore areas where we have limited ourselves. In his book, No Limit, he says that we often limit ourselves in various areas of life causing us not to live up to our fullest potential. Breaking down capacity into three parts, awareness, ability and choice, he stated his capacity challenge. He says if you grow in your awareness, develop your abilities and make the right choice, you can reach and grow your capacity. What if our limit is not really our limit? Each chapter of this book opens us up to traits and skills we can increase to blow the cap off our capacity.  Some are things we already possess such as energy, creativity and leadership. Other things we have to choose such as attitude, character and intentionality.

He also draws the reader’s attention to talent and the ability to use your gift the best way you can. Rather than wasting time on your weak areas, it is advisable to focus on your natural strengths and develop them for your benefit and that of others. The author recommends forgetting the "anything is possible" myth. He said what stops people from reaching their capacity often isn’t lack of desire. It’s usually lack of awareness. Sad is the day for any man when he is absolutely satisfied with the life he is living, thoughts he is thinking, deeds he is doing. Dysfunctional people want others to function on their level, and average people want others to be average while high achievers want others to achieve. No one has ever stayed the same while at the same time rising to a higher level. Willingness to change is a price we need to pay to grow. You have to make yourself better so that you can have more to give. This requires an abundance mindset. The question is how can we make things better if we are already successful? Being successful sometimes comes with a temptation to be lulled into false security to believe that we have arrived. The greatest detriment is relying on past success continually. The world will try to talk you out of hard work. Sometimes we have a conviction that we can’t get ahead, we feel down and we watch our lives go down the hill.  The good news is this; your production capacity is within your control. Repeated choices to take responsibility give you mental and emotional momentum which only makes you feel stronger and better about yourself. Resilient people don’t focus on negative experiences, they focus on what they can feel from experience. The truth is if you cannot manage yourself, you cannot manage your life. You cannot maximize your capacity if you do not increase your discipline. The author concludes with words of affirmation:

“I believe in you and I believe in your ability to reach your capacity.”

This book contains everything you need to become aware of what is limiting you, the ability you need to develop the capacities in you and how to make choices that will help to maximize your capacity.

THE BIG THREE - KEY POINTS

Key point #1: Awareness + Ability + Choice = Capacity

Key point #2: Focus on your natural strength and not on your weakness

Key point #3: Your Production capacity is within your control

One Last Thing

“Life is like a ten-speed bike. Most of us have gears we never use.”
― John C. Maxwell

 

Start With Why

/0 Comments/in , , , , , , , /by

Start With Why is about an effective way of thinking, communicating, innovating and influencing people as a leader. Simon Sinek displays the notion that capable leaders inspire other people by emphasizing on the intention (‘the WHY’) before the procedure (the “HOW”) and the product or service (the “WHAT”). The more organizations and people who learn to start with WHY, the more those around will live a fulfilled life.

The first part of the book talks about a world that doesn’t start with WHY. Simon discusses two ways to influence behavior which is inspiration or manipulation.  Salespeople believe they attract customers with their features or price. In other words, we have no idea, so we manipulate sales, promotion the whole time. And yes, manipulation works. Prices, promotion, fears, aspirations, and novelty are all used to manipulate and motivate a purchase. All of these techniques work but Simon made it known that they are not sustainable and are short-lived. Regarding leadership, they can push you to the top, but they won’t make people follow you. Leadership is the ability to rally people, not for a single event but for years. However, there are few leaders who choose to inspire rather than motivate people. Whether individuals or organizations, every inspiring leader thinks, acts and communicates the same way. Consciously or not, how they do it is by following a naturally occurring pattern called the Golden Circle.

Part two of this book shows how leaders can inspire actions instead of manipulating people to act. The golden circle revolves around the WHAT (product or service), the HOW ( the procedure) and the WHY (the intention). Inspiring companies start with WHY. There is no trickery or manipulation. They just reverse the order of information. As humans, we crave a sense of belonging and we do this to survive. Starting with why helps to eliminate fear, share your beliefs and create a sense of belonging.

Part three of this book introduces us to the leaders’ needs. Leaders need a following. As members of the human race, we are attracted to those whose values, cultures and beliefs align with ours. When we recruit employees, we recruit people who believe what we believe so that we can trust one another instead of hiring purely based on skills and experience. In order words, leaders must build trust before building followers. The emergence of trust shows that trust is not a checklist. Instead, it is a feeling. We trust people and companies even when things go wrong, and we don’t believe others even when things might have gone the way it should. The idea is as a leader; you must earn trust by communicating and demonstrating that you share the same value and belief. That is why recruiters don’t hire for skills but attitude. Skills can be taught, but attitude must align with the organization’s culture. When you have a belief, i.e., a 'WHY' your what is just one of the ways of bringing that WHY to life.

Other parts of this great book discuss building trust, marketing and branding, the big Why and many other cogent topics that add value to organizations and individual.

The WHY does not come from looking ahead at what you want to achieve and figuring out an appropriate strategy to get there. Finding WHY is a process of discovery and not invention.

THE BIG THREE – KEY POINTS

Key point #1:   To influence people’s behavior, you either manipulate or inspire.

Key point #2:   A clearly stated WHY helps separate you from others and build trust.

Key point #3:   Clients identify with organizations that have their WHY clearly stated.

 

One Last Thing

“People don't buy what you do; they buy why you do it. And what you do simply proves what you believe”
― Simon Sinek, Start with Why: How Great Leaders Inspire Everyone to Take Action

The Power of Habit. Why We Do What We Do in Life and Business

/in , , , , , /by

Charles Duhigg, a Pulitzer Prize-winning New York Times reporter, takes us to the thrilling edge of scientific discovery that opens up our minds to how habits come to be, why habits exist, how patterns are formed and how we can change and rebuild them. With his ability to distill the vast amount of information and penetrate intelligence, Duhigg shares his perception about one of the most challenging human natures and how it can be transformed. In this book, he divides the science of habit into three levels: individuals, business, and society. This book is based on interviews, organizational research and a load of studies.

 

HOW HABITS WORK

In the first chapter, the author tells a story of Eugene Pauly, whose brain was damaged by a virus. After the damage, he finds it difficult to remember the slightest event for more than a minute. Despite that, he was able to navigate his way around his house and even the outside world to some extent, which was only possible because the part of the brain responsible for habit was intact. What supports this theory is that whenever something changes, his behavior falls apart; he would get lost and unable to complete the simplest of activities.

Even though habits are automatic and sometimes are an unconscious series of actions, they can be changed. The author gave his insight base on a further experiment with Eugene Pauly, “Habits are powerful but delicate. They can emerge outside our consciousness or can be deliberately designed.”

The habit loop starts with a cue which is like a trigger followed by an automatic response which can be mental, physical or emotional and then reinforced by a reward and then the cycle of a new habit begins. What keeps the habit loop rolling is the craving and anticipation of reward which locks in the routine and habit. Once a habit is formed, it runs automatically even without conscious thought and continues that way even when reward changes.

THE GOLDEN RULE OF HABIT CHANGE

Chapter three of this book describes how transformation occurs. Once you are aware of how your habit works, once you recognize the cues and reward, you are halfway to changing such habit. This was supported by a story of a girl who has the habit of nail-biting. The cure involved was to make her aware of the cues, making her note when the cues emerge. Eventually, she was able to replace the habit with rubbing her hands together. The signals stayed, the behavior changed.

At the end of the chapter, the author makes two essential remarks which are: it is difficult to draw the line between habit and addiction and the second is the process of habit change is easily described, it does not necessarily follow that it is easily accomplished.”

Other chapters of the book explore why some habits are stonger than others, willpower and dow it can be turned into a habit, organizational habits or routines. The final chapter discusses moral questions related to habits and to what extent we are responsible for them.

 

THE BIG THREE - KEY POINTS

 

Key point #1: Habits can be changed by removing cues that trigger the routine or by replacing a bad habit with good one.

Key point #2:  It is difficult to draw a line between habit and addiction.

Key point #3: Once you’re aware of how your habits work, once you recognize the cues and rewards, you’re halfway to changing them.

 

One Last Thing

“The Golden Rule of Habit Change: You can't extinguish a bad habit, you can only change it.” ― Charles Duhigg, The Power of Habit: Why We Do What We Do in Life and Business

Innovators

/0 Comments/in , , , , , , /by

Walter Isaacson, a biography writer, reveals the story of the people who created the computer and internet. It is a standard history of digital revolution and an indispensable guide to how innovation was birthed. He describes the talents that allowed confident entrepreneurs to turn their visionary ideas into a disruptive leap, why some succeeded and why some fail.

The book started with a genius named Ada Bryon, the daughter of Lord Bryon. She was tutored in math which she further nurtured herself in adulthood and also studied art. She had a burning passion for one and felt the other helped discipline herself. She soon met Charles Babbage, a science and math whiz who invented the difference engine, the giant calculating machine. Soon, Ada started using her sense of art and mathematical ability to expand upon an improved version of the difference engine, the analytical engine. This machine would be able to process different problems and even switch between what to solve on its own. When translating a transcript of Babbage’s description, Ada added her own notes which envisioned the modern computer. Mostly, she described computer as we know them, Versatile general-purpose machine. Sadly, Babbage’s machine was never invented, and he died in poverty. Ada got married to William King who later became the Earl of Lovelace which led to her being known as Ada Lovelace.

Another group of genius’ was Eckert and Mauchly who served as counterbalances for each other making them typical of many digital-arts leadership duos. Eckert drove people with a passion for precision while Mauchly tended to calm them and make them feel loved. Eckert conceded that neither could have done it alone. In 1946, they both formed their commercial business that created the next big computer maned UNIVAC, which became a celebrity on election night in 1952 by predicting the winner early. With Grace Hopper, the first workable compiler came into existence. She allowed ordinary folks to write programs in something that looks like English. She started the open-source approach by sending her workout for others to improve and lead the creation of COBOL, the first cross-platform language for computers.

The next prominent actor on our stage wasn’t a single player but a team assembled at AT&T Bell Labs. By bringing theorists and engineers who had vision and passion, they set the stage for the development of the solid state device known as the transistor. The three players who earned the Nobel prize for this discovery were William Shockley, Walter Brattain and John Bardeen Brattain. Bardeen produced the first crude transistor in 1947 and Shockley produced an improvised version soon after. It wasn’t long before transistors were replacing the vacuum tubes in radios and finding their way into computers.

Other recognized players in this book include John Von Neumann, a Hungarian-born mathematician. He contributed expressly to figuring out how to store a program in computer memory. He also figured out how to make a computer modify its program based on the results it was getting. Robert Noyce led a team that made a better and more efficient microchip. The idea of a microchip was to place multiple devices like transistors on the same piece of silicon and was brought into existence by two major companies. Jack Kilby led the first team. Kilby’s product featured gold wires connecting the device while Noyce’s chip laid down a grid of copper on the chip to connect the chips. The race was to make microchips smaller, faster, cheaper and more powerful. Ultimately, both companies worked it out so they could benefit. Kilby finally received the Nobel prize in 2000 while Noyce died in 1990. Tim Berners Lee created the necessary tools needed to bring his vision to life. His vision was to create a single global web of information which led him to use hypertext to connect one document on one computer to another elsewhere on the internet.

The final story in this book involves two graduate students from Stanford who were both rejected by MIT. While Larry Page and Sergey Brin’s Google search engine wasn’t the first of its kind, it did become most famous.

This book is full of people who stood at the time of intersection of the arts and science and made their contributions.

THE BIG THREE - KEY POINTS

Key point #1: Innovation is rarely one single individual’s effort as it’s based on collaboration integration and incremental improvement

Key point #2:  These innovators were willing to share their ideas, thoughts and work with people that make them significant

Key point #3: Progress doesn’t happen overnight or behind closed doors. It's only when people come together to share, collaborate, create and negate that ideas will amount to something that can change the world.

The Lean Startup

/0 Comments/in , , , /by

This book conveys the concept of validated learning (trying out new ideas and measuring its effect on potential customers to ascertain its effectiveness) and build-measure-learn feedback loop. It introduces a systematic approach to measure the progress of a project at startup. A start-up has its vision that employs a strategy such as product roadmap, business model, view of partners, competitors and customers. The result of the strategy used is the product. Strategy changes occasionally, product changes continuously while vision rarely changes.

A startup is designed to create a new product under uncertain conditions. Successes from these scenarios come from constant experimentation and learning from experts experience. A lot of learning is involved in the startup process and the most important thing is to figure out validated learning. The goal is to learn and know what the customers want and discard everything else.

As a startup, do not delay charging your customers as many startups do. Eric affirms starting with a low-quality prototype, charging customers from start date and using low volume revenue target for accountability.

One of the cores of Lean Startup model is the Build-Measure-Learn loop. Once an MVP is built, the goal is to make use of user feedback to iterate upon the product. After building an MVP, test the riskiest assumption first and then put it out for early adopters. Then define a baseline metric, a hypothesis to improve the metric and set out experiment targeted towards the same metric. As soon as you get the result, choose whether to persevere or pivot. Wealthfront pivoted from gaming platform/virtual stock trading to E-commerce service that offers money management by money managers.  Most entrepreneurs are afraid of failure thereby delaying the pivot. Also, due to vanity metrics and unclear success hypothesis, most entrepreneurs suffer from unnecessary regret for delaying the pivot. There are various types of pivot, some of which are customer segment Pivot, Zoom in Pivot, Customer need pivot, Business Architecture pivot, Value capture pivot amongst others. It is important to copy the essential features not just the superficial features when pivoting.

As the product grows, customers begin to patronize the product. Customers built overtime inform others about the product or end up purchasing the product again. Consequently, the product grows and achieves a product/market fit. When product/market fit happens, it leaves no room for doubt.

Likewise, as the startup grows, it has to adapt to changing customer base. Every company has to deal with four types of work. These include: launching a new product, scaling it for broad adoption, combating its commoditization by incremental improvement and maintenance of the product in the long run as part of the company’s product line. All steps are essential, but the last step can be a bit difficult for an entrepreneur.

A startup must pass through the learning stage, experiment hypothesis, build MVP, measure MVP, decide if to persevere or pivot, grow to adapt and innovate.  

The Big Three - Key Points

Key Point #1:

Measure the startup progress using the build-measure-learn feedback loop.

Key Point #2:

A startup is designed to create a new product under an uncertain condition, successes from these scenarios come from constant experimentation or learning from experts experience.

Key Point #3:

Every company has to deal with four types of work: Launching a new product, scaling it for broad adoption, combating its commoditization by incremental improvement and maintenance of the product in the long run as part of the company’s product line.

One Last Thing

“We must learn what customers really want, not what they say they want or what we think they should want.”

― Eric Ries, The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses